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SFCB -Project Plan for Developmentof PILOT for the City of Springfield Page 6 <br />Watertown, Massachusetts <br />Watertown is a sma11 community geographically (only 4 square miles) just west of <br />Boston. <br />In 1992, Harvard University was attempting to buy a large shopping center, as well as a <br />very large amount of surrounding property available for development. Watertown <br />demanded compensation for the loss of taxes for the shopping center and for the lost <br />potential of the surrounding property. In reiurn for permission to develop the property <br />without zoning interference from the Town; Harvard agreed to pay Watertown $3.8 <br />million annually starting in 2002 for 50 years with a 3% annual increase. <br />Hanover, New Hampshire <br />Hanover, located in northwestem New Hampshire, is home to another large w�ll- <br />endowed educational institution, bartmo�ith College. Darianoutl� does not have a fonnal <br />PILOT agreementwith the City but instead voluntarilypays taxes on large portions of <br />commercial property that it owns that woutd be eligibTe for tax exemption. <br />Uar�ou� has invested heavilythroughoutHanoverin commercialproperty and <br />occupies significantportions itself, but has agreed to voluntarilypay �axes on those <br />portions anyway. In addition, in New Hampshire dormitories and dix�ing halls of private <br />colleges are taxable (however the first $150,000 in value is treated as an exemption). <br />Dartmouth pays $3S million annuallyin taxes to Hanover. <br />Greenfield, Massachusetts <br />The Mayor of the City of Greenfield has just started an effort to obtain voluntary <br />payments from 123 targeted tax exemptproperties (there are 123 parcels but they do not <br />yet have a count of how many owners there are, but they do know th'at some tax exempt <br />owners own more then one parcel). The Finance Departmentestimates thatthe cost of <br />police, fi�e, and public works services is 17% of the budget. The rationale is thatthe tax <br />exempt properties should pay at least 17% of what they would pay if they were fully <br />taxable because these are the barest of direct services. The Mayor intends to contact each <br />tax exempt owner per5arie•. Iv and they intend to do a targeted mailing in October as well. <br />� <br />� J.E: RyanAssociates,lne. September16,2005 <br />